Residential building construction (NAICS 236118) industry trends
The residential building construction industry includes firms providing construction, remodeling or renovation services to single-family and multifamily residential buildings. Single-family residential buildings are those in which each housing unit is separated from its neighbors by a ground-to-roof wall and has no housing units constructed above or below. Multifamily residential buildings include high-rises, gardens, town house apartments and condominiums. Design-build firms and construction management firms serving as general contractors comprise this industry. Additionally, the industry includes merchant builders and residential remodelers. Merchant builders are those that build new homes on land owned by the builder rather than the homeowner—the land is included with the sale of the home. Residential remodelers provide additions, alterations, reconstruction, maintenance and repair work for residential buildings.
The Census Bureau’s most recent data indicates that there are approximately 574,487 firms within this industry.
According to Sageworks’ industry data, the industry’s net profit margin during the last 12 months was 4.28 percent. During this same time, the average gross profit margin was 28.79 percent.
The graph below shows business statistics for the average company in the residential building construction industry.
